Siluanov: the budget deficit will be at a safe level for three years


The federal budget deficit in the next three years will be at a safe level and will not exceed 1% of GDP, stated Finance Minister Anton Siluanov during parliamentary hearings “Parameters of the draft federal budget for 2024 and for the planning period 2025 and 2026.”

“The budget deficit throughout the three-year period will not exceed 1% of GDP. And this is an indicator that allows us to talk about a fairly safe level of deficit,” Siluanov said.

During his speech, he noted that budget policy is being implemented based on fairly favorable macroeconomic conditions. According to him, economic growth rates will be 2.2-2.3% annually for three years.

However, the government must be prepared for various scenarios and should not rely on favorable forecasts when drawing up the budget, he clarified. “The risks, we see, have not gone away; they remain. Economic and financial fragmentation and structural imbalance are gaining momentum, sanctions have not gone away, they have been introduced and continue to be introduced,” he added.

Siluanov noted that last year, when sanctions were introduced, there were big questions about the predictability of oil volumes and prices, but this year the government may return to the previous parameters of the budget rule. “We have established export opportunities, energy export chains, and now we can return to the previous parameters and rules, namely, by establishing a basic cut-off price for oil in order to determine which revenues can be used for expenses and which should be sent to the National Welfare Fund . For the next three years, we propose to set this cut-off price at $60 dollars per barrel. Everything above this price will form the National Welfare Fund. Anything less will go to finance expenses,” he clarified.

September 29 government contributed to the State Duma the draft federal budget for 2024 and the planning period of 2025 and 2026. According to the document, the budget for next year is drawn up with a deficit of 1.6 trillion rubles. Revenues in 2024 are planned at 35 trillion rubles, expenses at 36.6 trillion rubles. In 2025 and 2026 Budget revenues could amount to 33.5 trillion and 34.1 trillion rubles. respectively, and expenses – 34.4 trillion and 35.6 trillion rubles.


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